Plastic toy industry holds export potential - needs policy support
Ten years ago, the toy industry was 90% import-dependent, which came down to only 10% at present
Experts have said that proper policy support can boost the country's plastic toy industry and help with more export earnings.
"The plastic toy sector can play a big role as a non-traditional export sector, which requires policy support similar to the garment sector. Corporate tax for all export industries needs to be the same," said Ferdaus Ara Begum, chief executive officer of Business Initiative Leading Development (BUILD), in the keynote paper at a seminar titled "Plastic Toy Industries of Bangladesh a Potential Sector for Export Diversification".
The Bangladesh Plastic Good Manufacturers and Exporters Association (BPGMEA) organised the programme at Cirdap on Tuesday, in association with the World Bank's Export Competitiveness for Jobs (EC4J) Project and the Ministry of Commerce.
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Ferdaus Ara also said movable assets can be accepted as collateral to secure loans. Besides, other pre-shipment facilities for plastic toy manufacturers can ensure export competitiveness.
An SME credit scoring methodology should be developed based on which commercial banks can accept movable assets as collateral. Stringent conditions of the green translation fund and export development fund need simplification, she added.
Until April 2021-22, total plastic exports stood at $128.77 million and toy exports at $37.1 million, accounting for about 29% of total plastic exports, she said further.
Commerce Secretary Tapan Kanti Ghosh said all possible assistance will be provided by the government to enrich the plastic sector. Corporate taxes will be reduced this year. It may not be the same as garments, but it will gradually decrease.
Federation of Bangladesh Chambers of Commerce and Industry President Md Jashim Uddin said the government has decided to allot 100 acres of land in the chemical village in Sirajdikhan of Munshiganj, to be implemented by the Bangladesh Small and Cottage Industries Corporation, in favour of plastic industrial entrepreneurs. But the price of land is three times higher than usual prices, which small entrepreneurs cannot afford.
BPGMEA President Shamim Ahmed urged the government to withdraw supplementary duty (SD) on all types of toy components to aid the sector to flourish. Even 10 years ago, the toy industry was 90% import-dependent, which came down to only 10% at present.
